As a homeowner or someone who needs the services of a general contractor, it’s essential to know what rate they charge to ensure that you get the best value for your money. When hiring general contractors, you should expect that these professionals charge an hourly rate in most cases. However, in other cases, you’ll also find that some contractors charge you depending on the project.
Since it’s the common option, it always helps to know the current average hourly rate for contractors. So, how much do these contractors charge per hour in 2024? This article will provide a comprehensive guide on the hourly rates of contractors in the United States to give you an idea of the current market rates and how much you should expect to pay.
Factors Affecting Contractor Hourly Rates
Hourly rates for contractors in the United States in 2024 significantly differ based on various factors, such as the following:
- Type of contractor: General contractors overseeing entire projects typically charge more than specialized contractors such as plumbers or electricians due to the broader scope of their responsibilities and expertise.
- Experience and skill level: Contractors with extensive experience and a high skill level will demand higher hourly rates, reflecting their proficiency and track record of successful projects.
- Location: Rates are influenced by the cost of living in a specific area, with higher rates often found in regions with a higher cost of living due to increased expenses for contractors.
- Project size and complexity: Hourly rates may apply to smaller, straightforward projects, while larger or intricate projects might be quoted a flat fee or a percentage of the total project cost to account for the additional time and expertise required.
- Materials and equipment: Pricing structures vary among contractors, with some including material and equipment costs in their hourly rate while others itemize these expenses separately, impacting the overall project cost.
- Demand and competition: Hourly rates can be influenced by the demand for contractors in a particular area, with high-demand regions or markets with limited competition often leading to higher rates as contractors capitalize on their availability and specialized skills.
Average General Contractor Rates per Hour
There isn’t any standard rate for general contractors since it differs from the state, city, and even the country you live in — not to mention the other factors mentioned above. However, the general range that one would expect to pay is usually around $50.00 to $150.00 per hour.
Other contractors don’t charge an hourly rate. General contractors charge about 10 to 20 percent of the total construction project cost. For even larger projects, you might pay closer to the 25 percent mark for professional construction services. Here’s a breakdown of the current average contractor rates here in the US:
Average General Contractor Costs
Determining a precise figure for the average cost of a general contractor proves challenging due to multiple price-influencing factors. However, as a rough approximation, the budget is approximately $4,000 for engaging a general contractor. This estimation stems from their common practice of charging a percentage (ranging from 10% to 20%) of the total project expenses, a figure that varies significantly based on the project’s scale and intricacy. In addition, the cost of acquiring the services of a general contractor can go as low as $250 and as high as $58,000.
Standard General Contractor Fee Percentage
As mentioned earlier, general contractors’ salaries can be around 10 to 20 percent of the project cost, with the rate going as high as 25 percent for larger projects. The fees are calculated from a listing of materials, markup on subcontractor labor, and the total price of the entire job. General contractors package their fees with all services for a single total price.
They will pay you on your behalf for services, materials, and subcontractors. So, make sure you are aware of how much they tend to charge their clients. Also, keep in mind that these types of contractors generally charge you for fees that will depend on the amount of labor they need to exert.
Contractor Pricing
Contractors price their work as a markup on the services and materials to cover various factors such as the following:
- Labor and workers’ compensation
- Overhead of staff, operations, and office
- Insurance and general liability claims
- Contractor salary (profit)
- Taxes
For more information on this, we highly suggest you contact your local general contractor to get an actual quote of their rate.
General Contractor Hourly Rates
Now that you have an idea of what contractors charge in bulk, it’s time to look closer at those who charge an hourly rate. While there are contractors that offer an hourly rate, you will be hard-pressed to find one. Instead, what you should be looking for are handymen. While they are not generally qualified to remodel a home, contractors charge hourly for their work. Look for someone who will provide a bid or estimate on your project. The salary of a contractor isn’t always per hour. However, keep in mind that some charge an hourly rate. So, make sure you are aware of that to know how much an average or general contractor charges.
You can expect to pay around $50 – $150 per hour for a contractor and $40 – $50 per hour for a subcontractor or a helper if you can find one who’s willing to work at that particular rate. Be extra cautious about people who accept an hourly rate. Some tend to drag a job out to get the most money possible. That means a job that should’ve taken five hours can drag all the way to 9 or even 10 hours. A construction project that could’ve been completed in two weeks can potentially take up to a full month.
Professional handymen can be found for as little as $20 – $25 per hour. Their overhead costs are much lower; however, they also tend to drag projects to squeeze as much money as they can from you. So, always monitor the status and progress of the project. Ask questions and raise points of concern when you do notice one.
Contractor Daily Rates
A more likely scenario that still needs some careful monitoring is paying contractors a daily rate. According to Angie’s List (Angi), most contractors also accept daily charges of around $300 – $500 a day. These numbers cover their overhead expense costs, as well as their profit from the job. So always be mindful when contractors charge you. That way, you will know how much a general contractor will charge – whether it’s a fixed, daily, or hourly rate.
When possible, always get a bid or estimate in writing. Afterward, whatever unforeseen circumstances arise can be amended and added as long as they are unforeseeable. Plumbing issues, bad wiring, or molds in the wall are considered unforeseeable. Removing a fixture to replace a floor tile but not taking into account the time and cost spent to do it in the estimates isn’t considered unforeseeable.
Some general contractors work by bids. The reason is so that customers will not know how much they are making per hour. Whatever contractor you choose, just make sure you ask for an estimate to make sure you’re not spending more than you should on your project.
Estimates
Speaking of estimates, it should always be the first thing you ask when looking for a contractor or handyman. The reason is that there isn’t any fixed rate in terms of contractor services. They will always fluctuate depending on the trend of the industry. To compete with the industry, contractors charge at a rate that’s close or even with other contractors. That way, clients won’t leave them for someone who’s cheaper yet offers the same services.
That’s why, to make sure you get the right amount of service, you need to ask for an estimate on your particular project. The cheapest isn’t the best option. Always go with the one that offers the most reasonable rate.
Calculating Contractor Rate
You might be asking if you can calculate contractor rates so you can anticipate early on before approaching an actual contractor. However, that’s not really the case. The best and only option you have to determine contractor rates is to ask them for a quote or an estimate. That way, you will know how much contractors charge you for your specific project. But to give you an idea of the actual numbers, here’s a breakdown of a general contractor’s price list:
Keep in mind that there isn’t any fixed price when it comes to professional contractor services. It will always fluctuate, depending on the project. You can contact your local contractor now if you need help in determining how much they charge.
How to Ask for an Invoice from a Professional Contractor
Requesting an invoice from a professional contractor is a crucial step in managing your project’s finances efficiently. It not only ensures transparency between you and the contractor but also helps you keep a record of expenses for future reference. Here are five effective ways to ask for an invoice from a professional contractor:
- Direct Request: Simply ask the contractor directly for an invoice upon completion of a certain milestone or at the end of the project. Being straightforward minimizes misunderstandings and ensures you get what you need in a timely manner.
- Email Communication: Send an email requesting the invoice. This method provides a written record of your request, which can be useful for tracking and future reference. Be sure to include specific details about what the invoice should cover.
- Through Contract Agreement: If it’s stipulated in your contract, remind the contractor of their obligation to provide regular invoices as part of their contractual duties. This can be a polite yet firm way to ensure compliance.
- Phone Call Follow-Up: After initially requesting an invoice through another medium, a follow-up phone call can help clarify any misunderstandings and expedite the process.
- Via A Project Management Tool: If you’re using a project management tool or software, request an invoice through the platform. Many modern tools provide options for financial tracking and invoice requests, which helps streamline the process for both parties.
Frequently Asked Questions (FAQs)
Q1: Are there any additional fees that contractors may charge on top of their hourly rate?
Yes, contractors may charge additional fees for urgent services, work done outside of regular hours, and for obtaining special materials or permits required for the job. It’s important to discuss any potential extra charges before work begins.
Q2: Is it cheaper to hire a contractor on an hourly or fixed-rate basis for a small project?
It depends on the project’s complexity and duration. For very small or straightforward tasks, hiring a contractor on an hourly basis might be more cost-effective. However, for projects with a clear scope and predictable timeline, a fixed rate might offer better value.
Q3: How can I ensure a contractor is not overcharging me?
To avoid being overcharged, obtain multiple estimates for your project, check the contractor’s references and reviews, and ensure the contract clearly outlines the scope of work, pricing, and payment terms.
Q4: Do experienced contractors charge more per hour than less experienced ones?
Generally, yes. Experienced contractors often charge more due to their expertise, efficiency, and higher quality of work. However, their ability to anticipate and solve complex problems quickly can ultimately save money and time.
Q5: Can negotiation affect a contractor’s hourly rate?
Yes, there is often room for negotiation in a contractor’s hourly rate, especially for larger projects or when planning to establish a long-term relationship. However, it’s crucial to balance negotiation with the understanding that quality work deserves fair compensation.
Q6: How does the location of my project affect the hourly rate charged by contractors?
The cost of living and doing business varies vastly across different regions, which can significantly affect hourly rates. Urban areas with a high cost of living tend to have higher hourly rates due to the increased overhead costs contractors face.
Streamline Contractor Billing with ReliaBills
If you’re a contractor or handyman looking to easily manage and track your billing, It’s essential to have a consistent way of invoicing your clients and receiving payment for your services. The best way to do this is by using a reliable invoicing and billing tool like ReliaBills. With its customizable invoice templates, real-time payment tracking, and automated reminders for overdue payments, you can streamline your billing process and ensure timely payments from clients.
ReliaBills is a cloud-based invoicing and billing software designed to automate payment processes, reduce administrative overhead, and streamline payment processing duties. ReliaBills’ payment processing features include automated recurring billing, payment tracking, payment reminders, online payment processing, and much more!
It also provides valuable tools that help manage customer information, monitor payment records, and create proper billing and collection reports. As a result, invoice and billing management are simple and convenient. You also get access to active customer support, ready to assist you whenever you need help.
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With ReliaBills, you have an all-in-one solution to your invoicing and payment processing needs. Our convenient solutions will enable you to focus more on running and growing your business. Get started today!
Conclusion
Managing contractor invoicing and payment processes can be streamlined significantly by understanding not only the best practices for requesting invoices but also by being aware of the various factors influencing contractor rates and fees. From the way you ask for an invoice to navigating hourly rates and negotiating terms, each step is crucial for a smooth, efficient billing cycle.
Remember, a well-informed client can cultivate a positive working relationship with contractors, ensuring clarity, trust, and fairness in every transaction. By applying these insights, anyone hiring contractors can achieve more predictable project costs and avoid common pitfalls associated with contractor billing.
